Environmental productivity growth, regulation and types of pollutants: Evidence from European firms.

European manufacturing firms have to cope with the new regulations that advocate a greener and more sustainable future with less emissions and at the same time enhance or at least maintain their productivity levels. A unique dataset is constructed by combining information on different firms' pollutants with their financial information during the 2011-2017 period. A non-radial directional distance function analysis is adopted with desirable and undesirable outputs to estimate environmental productivity growth and its components, which addresses the problem of heterogeneity.